Home Depot currently pays an annual dividend in the amount of $5.00 per share (DPS). The stock is currently selling at $27.00 per share. The firm expects its earnings and dividends To grow by a constant rate of 6.0%. You have gathered some macro-economic data: The risk-free rate of return on Treasury Bonds is 3.0% The return on the S\&P 500 Market Index is 12.0% Home Depot stock has a Beta of 2.0 What is the expected rate of return on Home Depot? What is the Required Return as determined by the SML? Antiques R Us is a mature manufacturing firm The company just paid a dividend of $12.00 Management expects to reduce the payout by 5% per year indefinitely The required rate of return is 12% on this stock. What will you pay for Antiques R Us today? Po=$76.60 Po=$67.06 (C) Po=$56.63 Po=$65.65